Main Findings for 1 Bedroom Properties

Over the past year, 14 out of 18 areas have seen increases in rent for 1 bedroom properties. Lothian has seen the highest increase (7.9%) while Greater Glasgow has seen an increase of 5.6% between 2016 and 2017. These are the only two areas that have shown increases which are higher than the CPI inflation of 3.0% over the same time period. Other areas that have seen increases range from 1.0% in the Ayrshires to 2.8% in both Dundee and Angus and South Lanarkshire. Four areas saw a decrease, ranging from -0.2% in Dumfries and Galloway to -11.5% in Aberdeen and Shire. This is the second consecutive annual decrease for Aberdeen and Shire, which is likely to reflect decreased demand for rental properties following the downturn in the oil industry. See Chart 2 and Table 1 below.

Average rents for 1 bedroom properties have increased by 4.0% between 2016 and 2017, at the Scotland level, from £482 in 2016 to £501 in 2017. This compares to an increase in the UK Consumer Price Index of 3.0% in the year to Sept-17.

Figures on changes to rents for 1 bedroom properties over the period from 2010 to 2017 should be considered in the context of the cumulative increase in the UK Consumer Price Index of 15.9% from Sept-10 to Sept-17. Over the 7 year period from 2010 to 2017, two areas have seen rent increases above the level of CPI inflation. Lothian has seen the highest increase in private rents for 1 bedroom properties, with average rents rising by 35.3% (cumulative increase over 7 years) and average rents in the Greater Glasgow area have risen by 25.6% between 2010 and 2017.

For the remaining areas of Scotland, cumulative increases were below CPI inflation and have ranged from 0.5% in West Dunbartonshire to 13.3% in Highlands and Islands. Two areas saw average rents fall between 2010 and 2017. These were the Ayrshires (-1.5%) and Aberdeen and Shire (-5.3%). These regional trends combine to show a 15.0% cumulative increase for 1 bedroom properties from £436 in 2010 to £501 in 2017.

See Reference Tables ( Tables 7 to 14) for a more detailed breakdown of quartile and average rents for each year.

For the year to end-September 2017, Lothian had the highest average monthly rents for 1 bedroom properties across Scotland (£704), with Greater Glasgow having rents of £549. Areas with the lowest average rents for 1 bedroom properties included Scottish Borders (£345) and Ayrshires (£370). See Chart 3 below.